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Q1. Joe's search costs are $7 per search. He wants to buy a DVD player for his wife for Christmas, and the lowest price he's found so far is $200. Joe thinks one-third of the stores charge $300 for a DVD player, one-third charge $200, and one-third charge $185. Should Joe continue to search or buy a DVD player at a price of $200? Please step me through this problem.
Q2. Many airline routes worldwide are served by only one airline (a monopoly). Within the U.S., these are often from a small or mid-sized city to a major carrier hub and frequently operated by a regional carrier under contract to the larger airline.
1. Will these monopolies typically earn economic profits?
2. Why do not other airlines enter these monopoly routes?
3. Is price discrimination likely? If so, what type (1st, 2nd, or 3rd degree)? Will price discrimination increase profits?
Find out the equation for the linear supply curve which fits this information. What would the new equilibrium price and quantity be if supply were to increase by 20%.
Projects A requires an initial outlay of $1000 and yields $41200 in 4 year's time. Project B requires an outlay of $30 000 and yields $35 000, after 4 years. Which of these projects would you choose to invest in when market rate is 3 percent."
What is the total cost to Hildegard of finding a new plot of grass and getting y units of grass from it? Find an expression for her marginal costs and her average cost per patch of grass as a function of the
Lauren Moore has sold her business for $720,000 also wants to invest in condominium units (
Write a short essay, using the market failure analysis, to justify why the U.S. government should or should not be involved in the provision of (1) airport security and (2) medical care.
What is your total cost? What is your Average Fixed Cost? What is your Average Variable Cost? What is your Average Total Cost?
Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank.
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of the victims might you expect to arise under these two arr..
Explain how much of X and Y will Lisa White demand. Check out your answer by using the consumer equilibrium conditions.
Find the number of units of input L that maximizes the average product function. Determine the boundaries for the three stages of production.
Can you provide any examples of Illustrate what kind of equality could be made to offset these increased society costs
Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry.
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